Should you hire a real estate attorney or Realtor?

Real Estate Matters

Q: We bought a house four years ago in Oklahoma and ended up renting it out after we moved out of state. After renting the house for two years, the current tenants want to buy it and we have no clue what to do. Should we hire a real estate attorney or Realtor? We have no problem selling it ourselves but aren't sure of the steps to take.

A: We'd suggest you talk to a real estate attorney in your area to get some assistance with the sale. Now that you have found a buyer for your home, we don't think you'd want to pay a full fee of 5, 6 or 7 percent to a real estate agent to help you through the sale of the home.

Real estate attorneys are not always used in residential deals. While in some cities, like in the Northeast and bigger cities in the Midwest, the use of real estate attorneys in residential sales and purchases is quite prevalent, in others it's nonexistent.

In many places, buyers and sellers use real estate brokers. Once a buyer and seller have come together, in places where real estate attorneys are not used, the transaction is closed by using a closing attorney or settlement agent.

The closing attorney or settlement agent will prepare documents for the parties and get things ready for closing. The closing attorney or settlement agent doesn't work or represent the buyer or the seller; he or she merely represents the "transaction" in order to get it done. The attorney or agent follows the terms of the contract and settlement agreement to finalize the transaction.

When a buyer needs to obtain financing, the lender may select the settlement agent or closing attorney for the parties.

So where does this leave you? If you live in an area where real estate attorneys handle residential real estate transactions, we'd like to see you hire one to assist you in the sale. This attorney would represent you in the sale and look out for your best interests.

If you live in an area that uses settlement agents or closing attorneys, and not real estate attorneys, you might want to find one that is willing to give you a bit more guidance in the process. You need to sign a contract for the sale of the home and should have someone to explain the form to you. Sometimes real estate agents and brokers will do that when they represent you in the sale. They don't act as attorneys but give you some information to help you fill out the form.

We tend to like the system where real estate attorneys who are hired by buyers and sellers to represent their interests (as opposed to the attorneys who are paid for by the buyer but actually represent the lender), because buyers and sellers have someone on their side.

However, we understand that a large portion of the country has moved away from using real estate attorneys. So, you need to become a bit more knowledgeable about what you are selling and the customs in your area, and find someone willing to help you out in the sale of your home but also represent your best interests.

(Ilyce Glink is the creator of an 18-part webinar and ebook series called "The Intentional Investor: How to be wildly successful in real estate," as well as the author of many books on real estate. She also hosts the "Real Estate Minute," on her YouTube.com/expertrealestatetips channel. Samuel J. Tamkin is a Chicago-based real estate attorney. Contact Ilyce and Sam through her website, http://www.thinkglink.com.)